Risk Score
A risk score is a single summary value, usually on a defined scale, that represents a wallet's or transaction's overall likelihood of illicit involvement, calculated by combining multiple underlying findings — sanctions exposure, risk labels, behavioral patterns, and hop distance — into one number.
Risk Score
A risk score is a single summary value, usually on a defined scale, that represents a wallet's or transaction's overall likelihood of illicit involvement, calculated by combining multiple underlying findings — sanctions exposure, risk labels, behavioral patterns, and hop distance — into one number.
What it means
A well-constructed risk score is not a black box average of unrelated signals — it should weight findings by severity and confidence, so a single direct sanctions match dominates the score regardless of how many minor, low-confidence signals are also present. The methodology behind how a score combines its inputs matters as much as the score itself.
A risk score is inherently a simplification, useful for triage and prioritization but not a substitute for reviewing the underlying findings behind it. Two wallets can arrive at a similar numeric score through very different combinations of evidence, and a responsible screening tool always makes those underlying findings visible, not just the final number.
Real-world example
A wallet with a single low-confidence suspicious-service label might score similarly on some scales to one with several moderate findings combined — which is exactly why reviewing the individual findings behind a score, not just the number, matters before making a decision.
Related terms
In FreezeRadar
FreezeRadar's scoring methodology, published in full at /methodology/scoring, explains exactly how each finding type is weighted into a wallet's overall risk score.
By FreezeRadar Team
Research and product team behind FreezeRadar.
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